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#Create a value driver tree-Exercises.

#Create a value driver tree-Exercises.

2
Votes
3
Answer

Hello There,
In the exercises mentioned that: 
300 working days in the year, for produce 290,000 units 
but when we calculate the total days needed for produce 290,000 it will be: 181.25 days 
the questions is:

  1. why we supposed the total days for producing 290,000, 300 days ?
  2. why night shift are 75 days ?

Thank you in advance 

3 Answers

No answer yet ?!!
 

365 Team

Hi essa, 
thanks for reaching out!
Would you be able to specify which course and which lecture your question is referring to? Thanks so much!
 
Best, 
The 365 Team

Hi! The Course is INTRODUCTION TO BUSINESS ANALYTICS. And its about exercise 3.4 Value Driver Solution. I also have the same question about the 75 value for the night shifts.

22 hours

Thank a lot for your interaction and answer.

16 hours

365 Team
0
Votes

Hello,
Thanks for your question and apologies for the delayed reply.
First of all, the number of units to be produced is 290,000 and not 300,000 (the amount of units to be sold) because the company has an inventory of 30,000 units and will sell 10,000 of these. Therefore 290,000 units need to be produced.
To answer the second question – why 75 night shifts –> well, that’s assuming that night shifts will be minimized by the plant manager as they are more expensive. So, they’ll work a maximum of 300 day shifts and the rest will be compensated for with night shifts.
Hope this helps!